AGA Rangemaster improves on acceleration of mortgage approvals
AN acceleration in mortgage approvals has coincided with a pick-up in its main markets, Midlands-based range cooker and boiler manufacturer AGA Rangemaster has said.
The Leamington Spa company, often used as a barometer for the state of the housing market, is thought to be one of the early beneficiaries of the Help to Buy scheme.
In an interim trading statement covering the period since the beginning of July, the firm said: “Activity in the group’s markets has started to pick up as expected, with an improvement in the number of housing transactions following on from the acceleration in the levels of mortgage approvals.
“AGA cooker orders are promising and are now up over 15% so far this year. The AGA Dual Control launched in July is encouraging existing owners to trade up and, together with the Total Control launched in 2011, now represent over half of AGA cooker orders since the half year.”
The company said it now expected second half revenues to be ahead of last year: order intake is currently up around 3% year to date. However, it warned the transition from tougher to more normalised markets for its brands was not uniform.
Rangemaster orders are just ahead for the year to date, having trailed in the first half.
Rayburn and Stanley cast iron cooker sales are down. AGA Marvel sales in North America continue to be comfortably ahead of the prior year. Fired Earth orders are up 4% for the year to date but Grange orders are down.
It said trend lines suggested a sound performance in 2013 with an improving outlook for 2014 as sales and product initiatives come to fruition.
“For example, our first shipment of AGA and Rangemaster products for the Chinese market, to be sold in collaboration with Vatti, will be made shortly in preparation for a full launch in the first quarter of 2014,” it added.
William McGrath, AGA chief executive said the improving housing market created a more positive backcloth for the group and sales trend lines in most of its operations were encouraging.
“However, until household goods expenditure starts growing, it is right to be cautious. AGA sales are a hot spot fuelled by our new generation of product and as home moves increase, our products come front of mind,” he said.
